Principles and Practices of Marketing: A Case Study of Tesla, Inc.

This document explores the principles and practices of marketing through a case study of Tesla, Inc. It discusses their promotional mix, including advertising, public relations, sales promotion, events and experiences, personal selling, direct marketing, internet marketing, and word of mouth. It also covers the STP analysis and evaluates the effectiveness of their marketing strategies.

Marketing consultant
Principles and
practices of marketing

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
Background of Tesla...................................................................................................................4
Promotional Mix and Activity of Tesla, Inc...............................................................................4
Advertising..................................................................................................................................5
Public relations and publicity......................................................................................................5
Sales promotion...........................................................................................................................6
Events and experiences...............................................................................................................7
Personal selling...........................................................................................................................8
Direct marketing..........................................................................................................................8
Internet marketing ......................................................................................................................8
Word of mouth............................................................................................................................9
STP analysis................................................................................................................................9
Task 2.............................................................................................................................................10
Definition and application of model.........................................................................................10
Evaluation of effectiveness.......................................................................................................11
Push and Pull strategies.............................................................................................................12
Evaluation of effectiveness.......................................................................................................13
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14
Books and journals....................................................................................................................14

INTRODUCTION
Marketing is an essential part of organisation function where company enables operations
for launching and describing its product into large market. It refers to the process of designing
product and promote it into an attractive way by indulging effective techniques and tools of
marketing. It consist various principles and practices which significantly proven tactic for
promoting an organizational goods and services. The report is divided into two sections which
consist marketing principles of TESLA, Inc. It is an American company which rank in best
sellers into automatise industry. It first operated in 2003 established in California, UK. The
report consist various tactic of promotional aspect which includes effective tools and its
significance for making rightful activities (Angle, 2018). First part consist various activities or
promotional mix tools and into well manner. Moreover, other part consist influence and
evaluation of marketing theories that deliver a meaningful aspect of getting towards product
success.
TASK 1
Background of Tesla
Tesla, Inc had stated over taking business entity in 2003 in California, United Kingdom.
The company has specialised in selling electric vehicles, batteries and solar panels and other
essential automotive parts. It has global reach into several countries and launch new and
innovation product categories into every other state. Their main aim to utilise most scares
resources into fuller manner to build an innovation segment of vehicles and solar panels. It has
good brand value due to global presence into market as a world best seller in electric cars,
batteries that provide imitable competence to other firms.
Promotional Mix and Activity of Tesla, Inc
Promotional mix provides a type of toolkit in which companies could choose the best
promotional sources in order to develop market through innovative products features, working
and durability (De Mooij, 2018). Marketing mix involves this factor in order to guide an
organisation and aware them about promotional tools. Creating effective promotion can increase
chances of making the products and active and in the eyes of customer which attract them to
make purchase and be consistent with firm's quality. Marketing theory analyse the concept of
human behaviour and shows path regarding product development that will drive of some value to

gain competive advantage with buyers support. In context with Tesla, they make use of different
aspect of selling which are listed below:
Advertising
It is the famous tool for making promotion in order to reach into large market. Advertising is a
type of concept in which companies paid specific amount to building a marketing portfolio of
product. This tool is helpful for organisation when it seems to have difficulty in contact with
large number of people, advertising makes the work easier as it provide information and features
about products through television, articles, magazines, newspaper and many more. Tesla has
been implementing advertising campaign but not only focus on paid promotions rather they
mainly advertised through digital sources on their websites and channels and invest in indulging
traffic over it. They provide magazines and articles to be active into market that customers get to
know about new product launch ( Gillpatrick, 2019).
Public relations and publicity
It is also an important tool to encourage promotion of the product, organisation goods and
services is not only depend on inside channel but it cause much impact through building public
relation that includes every individual attached and connected with companies profile. this
include employees, investors, shareholder, customers, and other sponsors and marketers. They
play big role in Tesla automotive production of electric vehicles. The CEO of the company run a
campaign and make everyone aware about their new launch of space craft through twitter. They
spend low cost In showcasing products rather indulge those cost in making the it effective and
reasonable. It is an imitable strategy runs by CEO to be rare from others and take wise decision
in the world of showcasing (Hansen, and Juslin, 2018).

Sales promotion
It is a type of short term advantage that organisation use in place of any cost consuming
advertising tools. They believe in gaining more of customers retention that needs to be enhance.
Loyal customers are being address more effectively by providing them discounted benefits like
buy one get one free, cost effective benefits provided on taking heavy sales. For that instance,
Tesla does not focus on providing discounts or schemes on selling cars or any automatise
product (Jacobson, Gruzd, and Hernández-García, 2020). The company mainly focus on
launching referral programmes through which customer play big role in selling their product
through making word to word promotion of the brand. As they not consider any promkotional
axcativity or consider hi=eavy budget in discounts, due to highh brand name and quality
theyeliminate this factor and be consistenent in their procce and selling.
Events and experiences
This programme provide the procedure of selling and distribution of product knowledge
through promoting into different way. Through events, the company make sure to attends the
customers and general public personally and give them an insight of product features whether it
is already produced or will be launching in future. This process consist seminars, meeting,
conferences and webinars to regulate personal connect with the audience. For that instance, Tesla
runs these promotional events where an useful insight provided and Tesla new launch will
informed and its significance into society and community (Joanna, Marek, and Władysław,

2019). The company has drives regular events and conferences to make aware of model x,
model s and many more.
Personal selling
It is a type of concept in which organisations make their sales through promoting and
marketing to the visual customers. Personal selling involves the factors sales through face to face
interaction with new and existing customers. This way, they make useful contribution in
conferences and meeting wherein, the customers and other journalist come up with issues and
criteria they require with the company. Tesla mainly use public relations and conference where
they interact with customers who are interested in undertaking their projects and influence them
to purchase take advantage of new projects. They cover large areas In promoting through
personal interaction (Klepek, and Starzyczná, 2018). The company indulge in making customers
their main point which can be a influencer for their high growth.
Direct marketing
Direct marketing involves technique of marketing the product through direct selling
through digital or verbal sources. Organisation make use of sources by which customers gets
insight about the product features. These sources involve e-mail marketing, messages
notifications and other effective sources that used by large number of people on regular basis.
Direct marketing is effective due to it eliminate extra miscellaneous cost form the target and
focus only on targets and its results. Tesla has high reputation and brand awareness into market
and standardised product into whole world due to which they does not need to make use of this
feature.

Internet marketing
This factor comprises the fact that information technology has taken a lead into the global
market that has open several gates of opportunity that make business grow and customers
satisfied. Internet play crucial role in delivering messages and insights about product related
information. This factor consist various sources Instagram , Facebook, Twitter, YouTube and
google ads (Kumar, 2018). They have commenced an advantage to grow into market by posting
or blogging business services to be active in customers mind. people are ow connected with
internet and made it an important part of their life. They spend a lot of time in surfing feeds and
influenced by what they watch in them. Tesla is making full use of internet surfing by getting
connected with twitter and Facebook pages where customers millions of customers waiting for
their tweet. They have settle a versatile image into digital market where people gets influenced
by their blogs and tweets.
Word of mouth
This factor is also an effective part of promotion that does not create any cost or extra
efforts in promotion. It is not included in marketing mix or there is no any tools to work for this
factor. Word of mouth is a self interested activity which people perform with their own
prescription. When an individual liked something they promote it in their own way amongst
friends and relatives and this chain carry forwards with other individuals. It is the most effective
promotional activity amongst all as it contain relevant information irrespective of any visualize
version. Tesla has affected with moth publicity of the brand as its the only factor they resulted in
the best sellers and increasing brand value due to customer satisfactions and valuable standards.
STP analysis
It is a vital framework of marketing factor that consist three stages an organisation move
through in overall business function. Start with product development marketing carries on till its
sale ( Lee, and Jin, 2019). There are a lot of targets an organization achieve in between these star
ups. In context of Tesla, due to heavily product range and its standardised product they make
uses of segmentation, targeting and position factor which is described below:
Segmentation: this stage consist the factors of dividing people and society as per demographical,
geographical I.e. culture, age, gender and beliefs. These factors influencing them in making
purchase and drives behaviour of indifferent individuals. Tesla mainly segment its market as per

income standards of the society due to its heavily range products that could only be affordable
by higher section of the society.
Targeting: under this stage of approach, organisation target those segment of society where
company focus on left out market amongst the whole. This involve targeting most effective
individual by making analysis and researching the market what does customer wants with into
the global market also, identification of community factor help in enhancing its global
reach(Ngochi, and Kihara, 2019).
Positioning: This factor put emphasize on building brand value and set reputed image of target
market. Making brand value is effective factor in order to reach target market. Positioning set an
active image of companies product that helps in attracting more customers. Tesla evaluating this
factor to an extensive value as it is developed high position into market.
Porter’s Generic Framework:
this initial formulation of strategies over competitors drives with various strategical
factors that helps in getting competition into the marketplace. This framework helps in
production with cost effective techniques and make it reliable into the market.
Cost leadership: This factor has more weightage when it comes to product prices and
money worth satisfaction of customers. Tesla has immense cost effective technique which make
their product standardised and reasonable into the market. Tesla has more competitive price as
compared to its competitors.
Differentiation: this function indulge criteria to develop another effective services that
their competitors have,. Mainly competitors comes in race to be more innovative with each
other. That influenced in branding and providing some extra features (Pasko, Gerneshiy, and
Suvorova, 2019).
Focus: this factor focus on reflecting those individuals who have left from the reach of
company that and make proper strategies to meet with the needs of those people through
implementing effective customer base and personal feedback.
Tesla has mainly based of American origin where they make their proper evaluation of services
by allocating effective and professional employees. They have around millions of people
connected in all the regions.

Task 2
Definition and application of model
AIDA is an effective way to get acknowledge by the factors, beliefs and behaviour
consumer perform during making a purchase. By analysing customer behaviours and what their
presence of mind at the time of selecting products will be beneficial in making improvisation and
modification into products category so that companies will enjoy high benefit. Consumers
consist a lot of thoughts during purchase and opting. This helps in get clear version of customer
expectation(Rashid, and Preece, 2018). Tesla is encouraging the process through following
factors:
Attention: it is the foremost and effective function of AIDA model. An organisation
perform much efforts and drives innovative aspects in order to grab attention of large customers
at a same time. More customer attention will be beneficial for more sales for the company. In
relation with Tesla, as the company is highly concerned about advertisement but not not paid
promotion rather building followers on social media. Through these strategy they fulfil cost
effective techniques and grab large attention over the most used sources like Twitter. It is best
way to grab attention of millions of followers that inbuilt the aspect of get to know about their
sense of feeling and wants. Many campaign have run out successfully in which referral
programmes and conferences had created immense impact on customer perception while thought
of purchasing.
Interest: it is the next best element of the model that drives the significance of making
influence on customers so that they shows interest in organisation product and services.
Customers come along with different thoughts and scenario in their mind and build their own
perception against them. It is an important tasks for the organisation to convert their confusion
in perfect decision of buying their product only. This could only be done by offering them
innovating and valuable product features that would easily change their interest. Tesla need not
to perform any extra efforts to gain customer interest as they have settled with rare and unique
product selling concept. People are keen to buy Tesla's electric car that drives with immense
benefit and a reputed brand signature(Sadiku-Dushi, Dana, and Ramadani, 2019).
Desire: customers have a lot of desires and expectation but cannot get fulfilled fue to
overcoming of various factors like income, age group and society controversies. So that, it
would be effective when organisation provide elements and features that could be affordable and

approachable for everyone. Tesla could not operate with advertisement elements as they
influence public through mouth or digital promotion that actually cause immense desires to grab
their attractive services but customers could not get it due to discussed factors.
Action: it is the last process of AIDA model but the most necessary one. After get
analyse and evaluation of consumer behaviour and activities they perform during purchase. The
company will be reflected by a lot of factors that they have identified and needs to be prepare for
resolving and making solution in respect to grab attention, interest and desires towards their
products. Tesla has been a motivator for its competitors also in grabbing attention of customers
as it not only focus on maintaining cost and low budget promotion but also, implementing it in
regular terms.
Evaluation of effectiveness
As per the company is influencing on making strategies and product promotion. They
are entitled to get their performance check through effective tools and techniques. As
performance needs to be measure and mistakes must get analysed so that proper modification
could be provided as per customers want. Tesla has been using KPI indicators to get measured
which drives them with sound results in making the changes as their products require to be
perfect and beyond the expectation of customers.
Push and Pull strategies
Push strategy: this strategy is focused on making the goods available for the customer
through the way of indulging in advertising related techniques that will be done by mediators,
stakeholders and marketing managers. This strategy push the organisation to make effective
advertisement through person to person. Sometimes, customer are unaware about their wants and
desires and look forward to have something different in their life and create a memorable
experience, here this strategy function at its best (Szablewska, and Kubacki, 2019). Marketers
and mediator will play a crucial role in taking products features and information in front of those
customers who are not searching for it. The customers are very separable from the market that
company does not easily target due to complex behaviour of purchasing but when the company
is good in its best quality products these customers must be the first one to target. Tesla must
push their management to evaluate these sources of making advertisement as will be beneficial in
generating high sales and publicity. Products needs to be delivered on timely they would retain
unsold and overstocked cause losses for the company. for that instance, instead of facing losses,

Tesla need to put promotional strategies where company could provide regular advertisement
through article, newspaper also, create regular changes that would be attractive in grabbing
customers attention.
Pill strategy: this strategical plan involves the factors of targeting customers to get affected by
various sponsors and other businesses. The company mainly pull out huge business firms and
make their use in promoting their products through sponsorship agreement and. When direct
advertisement does not work with companies products, they must go for pull strategy where
indirect promotions would encourage in sales and revenue. Large firms like Tesla, have huge
brand relation due to which they automatically gets an opportunity to use this tool of media
reporting by which company comes in controversies and journals about each activity performed
during the time period(Thorpe, and Roper, 2019). This has become a positive as well as negative
factor. Positive factors creates influence on its product promotion.
Evaluation of effectiveness
Push strategy is mainly used for making indirect promotion for the product that shows its
efficiency by reflecting advertisement and clients feedback that have generated by making past
sales. So that customer will get attract from the main part of mouth publicity. The company make
assure about relevancy of data s it could get verified on practical basis. This strategy is useful in
building heavy customer demand for Tesla's automotive part by significantly shows clients
valuable response through new articles, magazines which will rely on the fact that Tesla is
encouraging on media and market activity.

CONCLUSION
From the above report of marketing essentials, it has driven the main area of organisation
function of promotional mix. This factor of marketing is required to prepare attractive marketing
campaign so that, advertisement would reflect into the market. The report has proven various
promotional tolls like social media marketing, direct marketing, mouth publicity, public and
personal relation. All these have comprises powerful area in new product launch by KPI
measurements and use of push and pull strategies.
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